Wall St put in a down day with banks copping the impact of profit takers after the S&P 500 had gained 17% in seven days. The big question is: can the market pause and resume the march up or will old lows be tested in coming weeks? Interestingly, the recent run of economic data has come in better than expected.The Dow Jones lost 85 points or 1.15% to 7400. The NASDAQ dropped 7 points or 0.5% to 1483. The S&P 500 gave up 10 points or 1.3% to 784.
The traders called the market rise the reflation trade where you buy the stocks and assets that will benefit from the economic stimulation policies around the globe.
CNBC's Bob Pisani made the following observation, which I’d like to share with you. "It's been a hell of a rally," he wrote. "At the open, the S&P 500 was 20% above the March 6th lows. Lowry, the oldest technical analyst service, noted that this was the best performance of any rally since the bear market began.”
Let's hope this can be sustained.
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